Fresh threats for Freeport’s Grasberg copper-gold mine in Indonesia

Freeport's giant Grasberg mine produced 445,000 tonnes of copper and 37.5 tonnes of gold in 2013

Freeport McMoRan Copper and Gold (NYSE: FCX) said production at its Grasberg copper-gold mine in Indonesia may be severely affected by a ban on unprocessed ore exports that takes effect in 2014.

The US-based miner, reports Reuters, also said it will try to find a way around the rules when renegotiating its contract with the Indonesian authorities.

Grasberg, the world's largest gold and second-largest copper mine with a history that dates back to the 1930s, resumed production in July, after an almost two months stoppage following the completion of a government probe into recent accidents at the mine.

As a result, the mine is expected to produce only 80% of its 2013-targeted output of 500,000 tonnes of copper, and 1.25 million ounces of gold. Grasberg also produces silver.

Freeport's current contract to operate Grasberg in the Papua province expires in 2021.

Cecilia Jamasmie, news editor at MINING.com, has over 15 years of experience in print media, TV, online media and public relations. She specializes in Corporate Social Responsibility (CSR) and the Latin American market. Cecilia has been interviewed by BBC News and CBC among others. She has also been syndicated by Forbes, Seeking Alpha and BIV. She holds a Master of Journalism (MJ) from the University of British Columbia, Canada, and she is currently based in Halifax, Nova Scotia.